Risk of inflation de-anchoring is higher in US than Canada – study
Authors say risk has also risen for both countries post-Covid
The risk of inflation de-anchoring is greater than it was before the pandemic and higher in the US than in Canada, according to research from the Bank of Canada.
The paper, which was updated on March 4, gauges the risk of de-anchoring by examining the inflation risk premium. The authors, Bruno Feunou and Gitanjali Kumar, explain that the premium is “the compensation, or extra returns, investors expect for holding an asset that carries inflation risk”.
They find that the premium has not followed
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